Non-Compete Buyout Calculator 2026
FTC's 2024 non-compete ban remains partially enjoined in 2026. Employees with non-competes often negotiate buyouts at 30-100% of restricted-period earnings. This tool computes fair buyout based on industry data and restriction scope.
State-by-State Enforcement
California, North Dakota, Oklahoma, Minnesota: non-competes essentially void by statute. New York (2024 law): limited enforcement, $250K-$1M+ exception. Texas, Florida, Massachusetts: enforceable if reasonable in time + geography + scope. Always check current state law — landscape changes frequently.
FTC Non-Compete Ban Status
FTC's January 2024 rule banning most non-competes was partially enjoined by Texas federal court (Ryan LLC v. FTC, August 2024). Status in 2026: ban not in effect, individual state laws govern. FTC continues to pursue enforcement actions against egregious non-competes. Federal legislation possible but unlikely soon.
Negotiation Strategy
Three levers: (1) Document why restriction is unreasonable — overly broad scope, no legitimate business interest. (2) Identify competing job offers in hand (signals immediate damages). (3) Engage employment attorney for cease-and-desist letter — most employers settle rather than litigate. Typical buyout: 30-70% of restricted-period earnings.
Source: FTC Non-Compete Rule (2024), Ryan LLC v. FTC (2024), 50-state non-compete enforceability survey. Last updated: May 2026.